H.R. 7792

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7792 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7792

To amend title I of the National Housing Act to increase the loan 
limits and clarify that property improvement loans may be used for 
construction of accessory dwelling units.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

March 4, 2026

Mr. Himes (for himself, Mr. Pappas, Mr. Harder of California, and Mr. 
Liccardo) introduced the following bill; which was referred to the 
Committee on Financial Services

_______________________________________________________________________

A BILL

To amend title I of the National Housing Act to increase the loan 
limits and clarify that property improvement loans may be used for 
construction of accessory dwelling units.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Property Improvement and 
Manufactured Housing Loan Modernization Act of 2026''.

SEC. 2. NATIONAL HOUSING ACT AMENDMENTS.

(a) In General.--Section 2 of the National Housing Act (12 U.S.C. 
1703) is amended--
(1) in subsection (a), by inserting ``construction of 
additional or accessory dwelling units, as defined by the 
Secretary,'' after ``improvements,''; and
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking subparagraph (A) and 
inserting the following new subparagraph:
``(A) $75,000 if made for the purpose of financing 
alterations, repairs and improvements upon or in connection 
with an existing single-family structure, including a 
manufactured home;'';
(ii) in subparagraph (B)--
(I) by striking ``$60,000'' and 
inserting ``$150,000'';
(II) by striking ``$12,000'' and 
inserting ``$37,500''; and
(III) by striking ``an apartment 
house or'';
(iii) by striking subparagraphs (C) and (D) 
and inserting the following:
``(C)(i) $106,405 if made for the purpose of financing the 
purchase of a single-section manufactured home; and
``(ii) $195,322 if made for the purpose of financing the 
purchase of a multi-section manufactured home;
``(D)(i) $149,782 if made for the purpose of financing the 
purchase of a single-section manufactured home and a suitably 
developed lot on which to place the home; and
``(ii) $238,699 if made for the purpose of financing the 
purchase of a multi-section manufactured home and a suitably 
developed lot on which to place the home;'';
(iv) in subparagraph (E)--
(I) by striking ``$23,226'' and 
inserting ``$43,377''; and
(II) by striking the period at the 
end and inserting a semicolon;
(v) in subparagraph (F), by striking 
``and'' at the end;
(vi) in subparagraph (G), by striking the 
period at the end and inserting ``; and''; and
(vii) by inserting after subparagraph (G) 
the following:
``(H) such principal amount as the Secretary may prescribe 
if made for the purpose of financing the construction of an 
accessory dwelling unit.''; and
(viii) in the matter preceding paragraph 
(2)--
(I) by striking ``regulation'' and 
inserting ``notice'';
(II) by striking ``increase'' and 
inserting ``set'';
(III) by striking ``(ii), (C), (D), 
and (E)'' and inserting ``through 
(H)'';
(IV) by inserting ``, or as 
necessary to achieve the goals of the 
Federal Housing Administration, 
periodically reset the dollar amount 
limitations in subparagraphs (A) 
through (H) based on justification and 
methodology set forth in advance by 
regulation'' before the period at the 
end; and
(V) by adjusting the margins 
appropriately;
(B) in paragraph (3), by striking ``exceeds--'' and 
all that follows through the period at the end and 
inserting ``exceeds such period of time as determined 
by the Secretary, not to exceed 30 years.'';
(C) by striking paragraph (9) and inserting the 
following:
``(9) Annual Indexing of Certain Dollar Amount Limitations.--The 
Secretary shall develop or choose 1 or more methods of indexing in 
order to annually set the loan limits established in paragraph (1), 
based on data the Secretary determines is appropriate for purposes of 
this section.''; and
(D) in paragraph (11), by striking ``lease--'' and 
all that follows through the period at the end and 
inserting ``unless such lease meets the terms and 
conditions established by the Secretary''.
(b) Deadline for Development or Choice of New Index; Interim 
Index.--
(1) Deadline for development or choice of new index.--Not 
later than 1 year after the date of enactment of this Act, the 
Secretary of Housing and Urban Development shall develop or 
choose 1 or more methods of indexing as required under section 
2(b)(9) of the National Housing Act (12 U.S.C. 1703(b)(9)), as 
amended by subsection (a) of this section.
(2) Interim index.--During the period beginning on the date 
of enactment of this Act and ending on the date on which the 
Secretary of Housing and Urban Development develops or chooses 
1 or more methods of indexing as required under section 2(b)(9) 
of the National Housing Act (12 U.S.C. 1703(b)(9)), as amended 
by subsection (a) of this section, the method of indexing 
established by the Secretary under that section before the date 
of enactment of this Act shall apply.

SEC. 3. HUD STUDY OF OFF-SITE CONSTRUCTION.

(a) Definitions.--In this section:
(1) Off-site construction housing.--The term ``off-site 
construction housing'' includes manufactured homes and modular 
homes.
(2) Manufactured home.--The term ``manufactured home'' 
means any home constructed in accordance with the construction 
and safety standards established under the National 
Manufactured Housing Construction and Safety Standards Act of 
1974 (42 U.S.C. 5401 et seq.).
(3) Modular home.--The term ``modular home'' means a home 
that is constructed in a factory in 1 or more modules, each of 
which meets applicable State and local building codes of the 
area in which the home will be located, and that are 
transported to the home building site, installed on 
foundations, and completed.
(b) Study.--The Secretary of Housing and Urban Development shall 
conduct a study and submit to Congress a report on the cost 
effectiveness of off-site construction housing, that includes--
(1) an analysis of the advantages and the impact of 
centralization in a factory and transportation to a 
construction site on cost, precision, and materials waste;
(2) the extent to which off-site construction housing meets 
housing quality standards under the National Standards for the 
Physical Inspection of Real Estate, or other standards as the 
Secretary may prescribe, compared to the extent for site-built 
homes, for such standards;
(3) the expected replacement and maintenance costs over the 
first 40 years of life of off-site construction homes compared 
to those costs for site-built homes; and
(4) opportunities for use beyond single-family housing, 
such as applications in accessory dwelling units, two- to four-
unit housing, and large multifamily housing.
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